If you're just starting to understand candles, then the pin bar is what you should begin with.


One of the most reliable and understandable patterns that often indicates a trend reversal or pullback, especially when the price bounces off strong levels.

The pin bar works simply: the market first moves in one direction, then sharply reverses.
This means buyers or sellers tried to push the price, but the market pushed back.
And this can be a signal of a reversal or a strong reaction at a level.

How to recognize it? Look for a candle with a small body — the price hardly changed, but one tail is very long, and the other side has almost none.
The close is usually near the edge, closer to the end of this tail.
If the price fell, then sharply reversed upward and closed at the top — it's a bullish pin bar.
If it rose, then reversed downward and closed at the bottom — it's a bearish one.

But here's what’s important: if before the pin bar there's a large candle that seems to engulf it, then the reversal might not be so strong.
This is called an engulfing pattern.
When the previous candle has a larger body and closes inside or beyond the pin bar, it indicates that the previous move was stronger than the reversal.
After such a pattern, the market often simply continues in the old direction — be more cautious.

How to trade the pin bar correctly?
First, wait until the candle fully closes.
Then, on the next candle, enter not at market price but place a limit order at the pin bar's open price.
For example, if the pin bar opened at 29,500 and closed at 30,000, place a limit order at 29,500 and wait for a pullback.
Stop-loss — slightly below the tail, say at 28,950.
Take profit at 2–3 times the stop or up to the nearest level.

Another life hack: look at the 30-period moving average MA30.
If the pin bar is above it — look for a long position.
If below — look for a short.
Against the MA30 without a very strong level, it's better not to enter.

In a nutshell: the pin bar is a reversal candle that shows where the market bounced.
You enter at the open price, catch the pullback, and move with the trend.
The main thing — don't forget about engulfing patterns and always check levels.
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